Healthcare Services Sector Update – Early Spring 2021 M&A Advisory

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Healthcare Services Sector Update – Early Spring 2021

The S&P Healthcare Services Index decreased by 4.5% over the last month, compared to the S&P 500 Index, which increased 1.0% over the same period.

Over the past month:

  • The sectors that experienced the most growth were Assisted/Independent Living (up 15.2%), Contract Research Organizations (up 6.6%) and Healthcare REITS (up 5.5%).
  • The sectors that experienced the largest decline were Telemedicine (down 18.0%), Dialysis Services (down 15.7%) and Home Medical Equipment/Durable Equipment (down 10.6%).
  • The current average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall are 1.93x and 10.0x, respectively.

 

Healthcare Services Sector Update – Early Spring 2021

The sectors with the highest valuation multiples include:

  • Consumer Directed Health/Wellness (4.50x LTM revenue, 27.2x LTM EBITDA)
  • HCIT (4.97x LTM revenue, 25.2x LTM EBITDA)
  • Home Health/Hospice (2.90x LTM revenue, 24.7x LTM EBITDA)
  • Contract Research Organizations (3.72x LTM revenue, 22.4x LTM EBITDA)
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